California posts good export numbers again

Adjusting the numbers for inflation shows that that state has resumed pre-recession levels of exporting
By Patrick Burnson, Executive Editor
September 12, 2011 - SCMR Editorial

In another sign that the United States economy is not heading into a second dip, California exporters recorded yet another month of double-digit growth in July, the 21st consecutive month in which the state’s export trade increased on a year-over-year basis, according to an analysis by Beacon Economics of foreign trade data released last week by the U.S. Commerce Department.

Goods exported by California businesses in July had a value of $13.15 billion, a nominal gain of 10.9 percent over the $11.86 billion reported in the same month last year. The state’s manufactured exports edged up by 6.1 percent, while non-manufactured exports (chiefly raw materials and agricultural products) rose 24.7 percent. Re-exports, meanwhile, saw a 19.0 percent rise.

“Adjusting the numbers for inflation shows that we have resumed pre-recession levels of exporting,” observed Jock O’Connell, Beacon Economics’ International Trade Adviser.

Beacon Economics expects continued gains in California’s export trade through the remainder of the year, as the U.S. and world economies overcome the negative shocks that hit earlier in the year. “Growth will accelerate as the year moves on and this will definitely boost those export figures,” said Christopher Thornberg, Beacon Economics’ founding partner.

He noted, however, that there are fundamental growth limitations based on debt issues in Europe and mild inflationary pressures in the developing world.

“There will be growth. It just won’t be as robust as we would prefer it to be,” O’Connell added.

Meanwhile, other economists are revising earlier forecasts in light of recent fluctuations in supply chain metrics and production cycles.

In an IHS webcast staged last week, shippers were also told that the global economy was gripped by a “lost decade,” but that a double dip recession is unlikely.

“The global economic recovery has stalled, said IHS chief economist Nariman Behravesh. “We have downgraded our forecast for both the United States and Europe on recent data that suggests a much more fragile recovery.”



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While it feels somewhat hard to fathom, the stage is set for the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio, Texas.

Carload volumes were up 1.4 percent at 300,388, and intermodal volume for the week ending September 13 was up 5 percent at 279,052 trailers and containers.

Company says the Cloud offering allows customers to respond more quickly to new business opportunities, without significant upfront cost and implementation times.

As e-commerce continues to take a bigger piece of the holiday package delivery pie, it stands to reason that companies need to be proactive and prepared in order to deliver premium service during the busiest time of year, which is rapidly approaching. And that is exactly what transportation giants UPS and FedEx are doing this year. How are they doing it exactly? The primary step they are taking is to up their numbers of seasonal staffers.

A recent hearing of the Subcommittee on Coast Guard and Maritime Transportation suggests that the U.S. Merchant Marine industry may be poised for a major comeback.

Article Topics

News · Global · Supply Chain · Management · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.